USDCAD: Extends Bearishness, Eyes More Declines

With USDCAD declining sharply the past week, the risk in the new week is for the pair to extend that weakness. In such a case, the 1.0000/0.9988 levels will come in as the next downside objectives. We expect the pair to find a respite here and possibly turn higher. But if that zone gives in, expect further declines to occur. Further support resides at the 0.9922 level and then the 0.9802 level. Its weekly RSI is bearish and pointing lower supporting this view. On the other hand, the pair will have to return above the 1.0230 level to reverse its present weakness. This if seen could create scope for a run at the 1.0361 level where a cap is likely. A breach of there will allow for more gains towards the 1.0445 level. All in all, the pair remains biased to the downside in the short term.